Problem
1. Does advertising create and shape consumer demand? Does advertising have any effect on the types of goods the consumer purchases? Cite evidence to support your answers to these two questions.
2. Explain in your own words why diamonds, which appear to be useless, are more expensive than water, which is life supporting. Which law of economics helps to explain why diamonds are more expensive than water?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.